The Government of Indonesia announced a package of economic policies consisting of three facilities. Cabinet Secretary along with the Coordinating Minister for Economic Affairs, Minister of Agricultural and Spatial Planning / Head of National Land Agency, Deputy Head of the Investment Coordinating Board (BKPM) made an announcement.
Package is divided into two approaches. The first regulation is related to labour-intensive industries, who will be given income tax relief under Article 21 and the second is about changes in Government Regulation No. 18 of 2015 which will provide tax allowance to the five labour-intensive industries.
The tax allowance was granted to new industries including footwear for everyday purposes, industrial sports shoes, the shoe industry engineering field, the apparel industry and the textile and apparel industry of leather.
Around 200 clothing brands such as Zara, Adidas, Nike, The North Face, Amer Group, Salomon, Arcteryx, Calvin Klein and H & M have production facilities in Indonesia. Recently Saiful Bahri, a member of the Indonesian Textile Association (API) field of Data and Information, explained the potential of Indonesia's involvement in producing the world's leading products.
Chairman of the Indonesian Textile Asoasiasi (API) Ade Sudrajat added that competitiveness of producers from Indonesia needs to be improved to compete with the rivals like China and Vietnam.
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